The Following Is the List of MAD Statistics for Each

question 161

Multiple Choice

The following is the list of MAD statistics for each of the models you have estimated from time-series data: $$\begin{array} { | l | c | } \hline \text { Model } & \text { MAD } \\\hline \text { Linear Trend } & 1.38 \\\hline \text { Quadratic Trend } & 1.22 \\\hline \text { Exponential Trend } & 1.39 \\\hline \text { AR(2) } & 0.71 \\\hline\end{array}$$ Based on the MAD criterion,the most appropriate model is

• A)linear trend.
• B)AR(2).
• C)quadratic trend.
• D)exponential trend.

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Definitions:

Authorized Shares

The highest quantity of shares that a company can legally distribute, as stated in its charter.

Noncumulative

Pertaining to preferred stock dividends, where dividends not paid in one period do not accumulate and are not required to be paid in future periods.

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, usually with fixed dividends.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, as stated by the issuer.